Multivendor marketplaces are the answer small business owners have needed to compete with large organizations for a long time. They make what is essentially a very investment-intensive process into a relatively affordable one. But just because the foundation like a Magento multivendor marketplace script is available does not mean that you will automatically be able to build a strong home on top of it. In fact, creating an efficient multivendor marketplace platform can be rather complicated. So, we have come up with a list of the most important steps that you need to take in order to establish a highly-functional and financially rewarding multivendor business platform.
Essential Steps for Setting Up a New Marketplace Platform
- Foundational Potential
When establishing a new marketplace, you need to first consider the scope of the business opportunities you can access through it. This will be the fundamentalbasis for the creation of your short and long-term business plan.
Now, when we say foundation, we basically mean the software you are choosing for your business. These days there are plenty of pre-constructed digital options to choose from. Overall, one of the most successful options is Magento. Particularly, the Magento ecommerce software is very useful for rapid expansion and dynamic scaling.
However, it is not necessary that your marketplace needs to have multiple vendor streams. In fact, it would be wasting money if you do not plant to use its multivendor features.
However, in this market scenario, most businesses inevitably expand to other niches and need software which can handle multiple product types and a variety of supplier sources. So, you need to decide what direction your business will take before you make your investment.
- Market Penetration and Marketing Outreach
Once you have understood the potential of your platform, you need to consider how much market penetration you can achieve and what kind of an outreach strategy that would require. Now, on the basis of your preliminary market analysis, you can decide where you want to allocate your marketing budget.
For larger capital investment companies, having a separate marketing software and the dedicated team would be best. However, if your startup has a modest budget, then you can opt for a Magento multivendor marketplace extension with inbuilt social media capabilities. This will help you reduce marketing expenses tremendously and also streamline the process.
Another potential benefit is that vendors can be integrated into the system and in case they have a social media or even an online presence, this can be used for greater outreach. Also, this will help in establishing a firm business relationship with them.
With the rise of better-integrated business software, automatization is really beneficial for businesses. It allows them to effectively manage all business process and retain a fair degree of control and oversight.
Most major mcommerce platforms like Magento multivendor marketplace systems offer a fair degree of automatization already. But it is not necessary that you will need that degree of automatization. So, you need to choose according to your present as well as future needs.
Another aspect to consider in this regard is how much can the platform be extended. Generally speaking, all marketplace platforms will allow a number of extensions. Ideally, you should choose one which can be scaled up easily.
The extensions must also be easily integrated and should be able to be managed by the automatization protocol. If not, you should either seek better alternatives or simply get the automatization code altered to fit your needs.
- Client Rapport
Finally, we come to the client-side of the business. There are many potentially beneficial things that can be done with this aspect other than selling products and generating revenue. For example, personalization is a very important aspect of online commerce in the world right now. If your platform can provide personalized marketing and a tailored shopping experience, then your client retention would be high.
While this idea is already in use among big ecommerce and m-commerce companies, the degree of their personalization is low at best. If you integrate quality personalization tools into your B2B multivendor marketplace ecommerce app, then you can outstrip these giants in terms of a unique consumer experience. This will naturally be key to future financial growth and stability.
Further, there are several additional ways in which marketing and brand building can be made integral to customer relationships. For example, using social influencers and even regular customers for some free market multichannel promotion is a smart way to enhance market outreach. This process can also be incentivized for better effect.
Another aspect for ensuring better sales is push notifications via email or mobile app if you have one. This leads to a better conversion of abandoned carts and gives your business more revenue.
On the whole, creating an online marketplace is about understand business requirements relating to niches and the necessary investment. A smart investor can choose Magento multivendor marketplace scripts or any other that can effectively serve their purpose. With the right planning and execution, it is possible to launch a highly successful marketplace business today.
Rakesh Jain is a CEO and Co-founder of Mobicommerce, an eCommerce website & mobile app development company having a team of best app developers who deliver best eCommerce solutions mainly on Magento and PrestaShop platform. He regularly contributes his knowledge on the leading blogging sites. You can connect with him on Twitter.